NDIC begins verification, payment to depositors of 46 failed microfinance banks

The Nigeria Deposit Insurance Corporation (NDIC) has commenced the verification and payment of insured deposits to customers of the 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN), assuring depositors that the liquidation process would be carried out in an orderly manner.

The Corporation said it had been appointed the official liquidator of the failed institutions following the revocation of their licences by the CBN on July 1, 2026, in line with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55 (1) and (2) of the NDIC Act 2023.

In a statement signed by Hawwau Gambo, head, Communication and Public Affairs Department, the NDIC said it had immediately taken over the affected banks and commenced the processes required to verify depositors and pay insured sums to eligible customers.

“The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors,” the Corporation said.

The deposit insurer also announced that the affected microfinance banks are no longer authorised to conduct banking business in Nigeria following the revocation of their operating licences, warning customers and members of the public against carrying out any transactions with the closed institutions.

According to the Corporation, any attempt by individuals or groups to remove, conceal, retain or interfere with the assets, records or other properties of the failed banks constitutes a violation of the law and may attract appropriate legal sanctions.

The NDIC said its intervention is aimed at protecting depositors and ensuring an orderly resolution of the failed institutions in accordance with its statutory mandate, while preserving confidence in the country’s financial system.

It assured depositors and other stakeholders that they would continue to receive updates on the liquidation exercise, including the procedures for the verification of claims and payment of insured deposits to eligible customers.

The Corporation urged affected depositors and the general public to remain calm and await further announcements as it continues the liquidation process in line with the provisions of the NDIC Act and other applicable laws.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.